Leaders of BRICS nations – India, Russia, Brazil, China and South Africa – recently met in the western Indian state of Goa on Oct. 15-16 for the group’s 8th summit.
BRICS members are all developing countries and represents 43 percent of the world population, having 30 percent of the world GDP and 17 percent share in the world trade.
The acronym BRIC was first used in 2001 by Goldman Sachs in their global economics paper, which predicted that the economies of Brazil, India, Russia and China would be among the biggest economies in the world in future.
The 1st BRIC Summit was hosted by Russia in 2009. South Africa was admitted by the other BRIC leaders in 2010, adding the “S” to the original grouping.
Below is the rundown of economic profiles some of the BRICS members.
Brazil: An Economic Giant
One of the most prominent counties in the South America, Brazil is an economic giant. As the seventh largest economy in the world, it’s not surprising that Brazil is fast emerging one of the top destinations for foreign nationals desirous of starting business in Brazil. The potential for international business in Brazil is huge and for those looking forward to starting business in Brazil and make their fortune in the country, unlimited opportunities exist in different industry verticals of the Brazilian economy.
Today, many foreign companies from around the world are willing to set up businesses. This is due to the financial stabilization achieved in late1990’s and emergence of a large middle-class consumer base.
During the period from the 1960s to 1980s, Brazil attracted huge amounts of foreign direct investment FDI), but later on it lost its position to Eastern European countries who had jettisoned Communism after its downfall. With the advent of the globalization, capital flow has been easier and foreign investments have increased. Presently, Brazil competes with emerging economies, such as China, India, and South Africa when it comes to receiving foreign direct investment.
In 2013, FDI in Brazil reached US$ 64 billion, which came mainly from the USA, the Netherlands and Luxembourg. Brazil is the 5th major inbound destination of FDI in the world. The other four are China, USA, Hong Kong and United Kingdom.
In recent years the Brazilian government is making efforts to improve the economic climate to foreign investors as the country is on the way to develop a more market-oriented economy. Apart from the reduction of the Import barriers, several government-owned enterprises have been privatized.
With its booming economy and growing base of middle class, Brazil is fast becoming more attractive to foreign investors.
China: An Economic Powerhouse
As the world’s most populous nation, with more than one billion people, China is one the biggest economies in the world. The mindboggling growth achieved by China during the past few decades entices the entrepreneurs to set up businesses in the country.
According to the findings of the latest survey conducted by the UOB Asian Enterprise Survey, China is the top destination for business expansion by Asian enterprises. This is due to the presence of a large and expanding middle-class consumer base and the country’s ability to offer low cost manufacturing. And China abounds in both.
Since China entered the reform era in 1978, the country has been a growth at an average rate of 10.5 percent. An impressive feat, indeed, if compared to the growth of 2.7 percent achieved by the global economy during this period. Today, the Chinese government are promoting business objectives more vigorously than what was two decades ago.
For over a century, the United States had been the top manufacturer in the world. However, in 2011, China overtook it as The Asian giant accounted for 19.8% of the world’s manufacturing output compared to the US’s 19.4%. Contrary to the popular belief, the private sector is also blooming. This is due to the gradual relaxation of controls by the state.
Today, vast majority of foreign companies operating in China are making profits. There has been a dramatic growth in the businesses of the US and other foreign businesses in China. Several western companies that include global behemoths such as Volkswagen, Boeing Starbucks and Procter & Gamble have set-up their presence in the country. Yum! Brands, the fast-food giant, which is the owner of brands include KFC, Pizza Hut and Taco Bell, generates about half of its global revenue in China. In fact, for the western firms, the share of global revenues coming from China continues to rise at rapid pace.
As China is now been acknowledged as an economic superpower throughout the world, the country is now attracting foreign business owners who want to set up a business in China.
For operating your business in a country with a continuous civilization dating back to five four thousand years and diverse population, it is an absolute must to understand the China business landscape before you enter the country for business pursuits. Compared to the western world, China makes a very different proposition when it comes to business practices and consumer preferences.
Today, China ranks among the top exporters in the world and attracts record amounts of foreign investment. The country is also investing billions of dollars in other parts of the world. Though the global financial crisis of 2009 initially hit China hard, its economy was able to quickly rebound and put itself on the growth path.
As one of the largest economies in the world, it’s no surprise that India has come to the forefront of attention from those looking for international business in India. The potential for foreign business owners is huge and for those keen to venture into this expanding market and make their fortune in India, endless opportunities are there in a variety of sectors.
India’s status as a fast growing economic power lures the investors to launch their businesses in India.Opening a business in India is not as difficult as it was in the days preceding the gradual opening of the Indian economy since 1990s. Today it is not a tough task to register a company in India as a foreigner. There are different ways of doing this. Either you can start from scratch and open a new firm or you can buy an off-the-shelf company.
Both foreign individuals and companies are eligible when it comes to starting business in India. However, there are some restrictions for the foreigners when it comes to starting business in India in certain business areas such as publishing.
Starting your business in India brings many benefits. India’s status as a fast growing economic power lures the investors to launch their businesses in India. Helping them in their endevour for starting business in India are business consultants offering business consultancy services. It is very much to the point to underline the fact that in their endevour to set up a company in India, Indian business consultants can be of great help in maximizing your benefits with the minimum amount of costs, stress and difficulty.
Before entering India for business pursuits, the entrepreneurs should do well to research the Indian market, the demand for their products or solutions and their client’s expectations. Though Indian customers world require the same products and solutions like their counterparts in other countries of the world but you should be prepared to customize your products and service to meet the local requirements.
Notwithstanding the many challenges facing India, the country is poised for next wave of entrepreneurship which is attracting the attention of the investors.